China passes US as largest energy consumer!

“The fact that China overtook the U.S. as the world’s largest energy consumer symbolizes the start of a new age in the history of energy,” IEA chief economist Fatih Birol said in an interview.

The WSJ article reports that China’s total energy consumption was just half the size of the U.S. 10 years ago.   The more fundamental concern is that per capita, China still has so much grow potential.   For those that have been to China, or seen recent pictures, documentaries, etc., you may have noted the rows of apartments with cloths drying in the window, or have been to Chinese homes where A/C units are often wall decoration at best.  Fair enough, from Shanghai to Shenzhen, 1.3 billion people are now seeing the grass on the other side of the globe, and thanks to historic demand for Chinese products and a culture of savings, many locals have the $$$ to afford a lifestyle change.  The fact that consumer preferences are changing so rapidly in China should caution those developing energy models to China’s  impact on energy supply/demand forecasts.

China’s voracious energy demand helps explain why the country—which gets most of its electricity from coal, the dirtiest of fossil-fuel resources—passed the U.S. in 2007 as the world’s largest emitter of carbon dioxide emissions and other greenhouse gases.

The report said China devoured 2,252 million tons of oil equivalent last year, or about 4% more than the U.S., which burned through 2,170 million tons of oil equivalent. The oil-equivalent metric represents all forms of energy consumed, including crude oil, nuclear, coal, natural gas and renewable sources such as hydropower.

The tricky play will be to balance China’s rising energy demand, national security concerns for strategic reserves and coal use with international pressure regarding GHG contamination, and most importantly will China be able to maintain a balanced supply of clean water?

We have predicted this moment for several years, but the real question is if we reached a critical mass that allows us to push forward with solutions, or are initiatives still stuck in bureaucracy or on someone’s desk on K Street?  Time will tell.

For more information on China’s role in Cleantech research, development and innovation, please read: “The rise of home-grown cleantech innovation in China”

Weekend Wire, March 27, 2010

Weekends greetings all,

In this edition of The Weekend Wire: being resourceful with a precious resource - water, an Austin, Texas power grid project looks to revolutionize power-usage, Greentech businesses are benefitting from the Recovery Act, and public opinion shows growing support for renewable energy sources.

In the China Focus section: China wins…again, some cool graphics, and a look at China’s national oil companies’ partnership strategy.

Environment

1. “World Bank Must Tackle Pressing Water Issues: Report” (Reuters) - The World Bank needs to pay more attention to the most pressing water-related problems in developing countries, where the effects of climate change are a growing threat, the Bank’s internal watchdog said on Monday, World Water Day.
2. “Knowing a Product’s “Water Footprint” May Help Consumers Conserve H2O” (Scientific American) – Environmentalists think food products should be labeled according to how much water is used to produce them
3. “Thirsty Peruvians Harvesting Fog with Nets” (Reuters) – Catching fog with nets is the solution to water scarcity for people who live beyond the reach of utility lines in this sandy hillside shantytown overlooking Peru’s capital, Lima.

Science/Technology

1. “Shell Venture Yields Petrol from Sugar” (Financial Times) - Royal Dutch Shell is turning sugar and water into small quantities of synthetic petrol at a joint venture with a US technology company, it has announced.  Virent Energy Systems, based in Wisconsin, has been producing about two thirds of a barrel per day of its “biogasoline” from a demonstration plant.
2. “Austin Aiming for a Grid Makeover” (NYT Green Inc.) - The city of Austin, Tex., today presented a wide-ranging list of recommendations for remaking its electricity system, including more energy efficiency measures and a change to the business model of the local utility.  The effort, known as the Pecan Street Project, goes beyond the concept of smart-grids and could serve as a national model, its backers say.

Finance/Business

1. “Clean-Tech Small Businesses Reaping Rewards from Recovery Act, $5.4 Billion So Far” (Clean Edge News) - The Department of Energy recently released a report highlighting the benefits of the Recovery Act to small businesses throughout the clean, renewable energy industry and environmental management sector.
2. “Toshiba in Talks with TerraPower” (Financial Times) – Toshiba is talking to a company backed by Microsoft chairman Bill Gates about joint development of a nuclear reactor with the potential to run for 100 years without refuelling.
3. “Chevron Sets up Test Site for 7 Solar Technologies” (Reuters) -  Chevron Corp, the second-largest U.S. oil company, said on Monday it has installed some 7,700 solar panels at a California site to test various technologies that help turn sunlight into electricity.
4. “Nine Companies Added to NASDAQ Clean Edge Green Energy Index” (Clean Edge News) - The NASDAQ OMX Group, Inc. and Clean Edge, Inc. recently announced the results of the semi-annual evaluation of the NASDAQ® Clean Edge® Green Energy Index (NASDAQ:CELS), which will become effective with the market open on Monday, March 22, 2010.

Policy

1. “Mid-April is Earliest to Renew Biodiesel Credit” (Reuters) – Congress is unlikely to revive the $1 a gallon biodiesel tax credit before mid-April the earliest, till after a two-week recess, U.S. biofuels officials said on Monday.
2. “Public Support for Nuclear Power at New Peak” (Reuters) – The majority of Americans who favor nuclear-generated electricity hit a new high this year, according to a poll on Monday that suggests growing support for President Barack Obama’s aid to the nuclear industry.
3. “Poll: 75% Support US Utility Solar Development” (RenewableEnergyWorld.com) – The masses demand renewable energy!
4. “The Proof is in the Pudding” (CAP) - Regional Greenhouse Gas Initiative shows pollution pricing works.

China Focus

1. “China Beats U.S. in Clean Energy Investments: Pew” (Reuters) – First it was manufacturing, now it’s investment.  Hopefully, if environmental concerns can’t motivate Washington, fear of China will…
2. “China’s Thirst for Resources: Global FDI” (Financial Times) – A very cool graphic illustrating China’s growing investment presence abroad…
3. “China Oil Firms Find Partners Ease Deals” (WSJ) – China’s oil companies are increasingly finding the value of partnering with foreign firms in their push abroad, especially in areas where they’ve run into trouble trying to go it alone.
4. “Chinese Wind Manufacturer to Build Nevada Turbine Plant, Create 1,000 Jobs” (Clean Edge News) – The U.S. Renewable Energy Group, A-Power Energy Generation Systems, Ltd., and American Nevada Group have announced the development and construction of a new production and assembly plant in Nevada that will supply highly advanced wind energy turbines to renewable energy projects throughout North and South America.

Enjoy your news and enjoy the weekend…preferrably not in that order.

-Will

Chu Talks Small Modular Reactors in WSJ

Energy Secretary Steven Chu wrote a piece in The Wall Street Journal this morning outlining the need for rejuvenating the U.S. nuclear power industry.  He discusses the benefits and implications of such an initiative for the American people:

Investing in nuclear energy will position America to lead in a growing industry. World-wide electricity generation is projected to rise 77% by 2030. If we are serious about cutting carbon pollution then nuclear power must be part of the solution. Countries such as China, South Korea and India have recognized this and are making investments in nuclear power that are driving demand for nuclear technologies. Our choice is clear: Develop these technologies today or import them tomorrow.

Mr. Chu pays special attention to the promising technology of small modular reactors or SMRs:

Small modular reactors would be less than one-third the size of current plants. They have compact designs and could be made in factories and transported to sites by truck or rail. SMRs would be ready to “plug and play” upon arrival.

If commercially successful [our emphasis], SMRs would significantly expand the options for nuclear power and its applications. Their small size makes them suitable to small electric grids so they are a good option for locations that cannot accommodate large-scale plants. The modular construction process would make them more affordable by reducing capital costs and construction times.

Mr. Chu’s discussion of SMRs alludes to a theme that should be familiar to readers of this morning’s post: bridging the gap to commercial viability can be as essential an innovation as the technologies themselves. 

Promising innovations need investment, and investors need incentives - from all sectors.  A public “State of the Technology” address from one of the most important individuals in the energy industry should help SMR technology bridge the viability gap somewhat.

Kudos, Mr. Chu…

… …

The full text of the WSJ article can be found here.

Calera Lands Investment from Coal Giant Peabody

A few weeks ago, I linked a Tom Friedman Op-Ed piece profiling two up-and-coming Greentech firms: Bloom Energy and Calera.  At the time, Bloom was making a lot of headlines, but it was Calera that Friedman dubbed to be the real breakout star, citing not only the company’s exciting technology but also a rumored upcoming investment from coal colossus Peabody Energy.

Well, Tom’s sources didn’t disappoint.  Monday, Peabody announced a $15 million dollar investment in the carbon-capturing company.

This piece from The New York Times provides a nice overview of Calera, its technology, and the opportunites and challenges that lie ahead for the California company.

In a nutshell, Calera  takes emissions from carbon and gas-fired plants and blasts them with sea water, capturing emissions in a coral-like substance that can be used as cement in various construction projects.  This product, in turn, can further reduce emissions by offsetting the CO2 output that results from cement production, one of the leading contributors to carbon emissions.

Calera plans to build its first commercial plant next year, and is partnering with a number of power companies and cement companies, domestically and internationally, as it refines its technology.  Some major issues still need to be resolved, such as neutralizing an acid biproduct of the process without altering the environmental impact or cost.

The article is definitely worth the read, if not for the more descriptive overview of the technology (which is pretty darn cool, if I do say so myself), then for the amusing, cynicism-rich quotes from scientists and other skeptics of the process.  (One individual explains why energy technology is NOT like an iPhone, for example).

The skeptics are justified.  Turning emissions into construction materials is a miraculous transformation (the article likens Calera’s technology to alchemy – turning materials into gold), but as the scientists’ positions suggest, the real magic happens when exciting technology turns into a commercially viable product.  THAT is when we can get really excited.